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Coverage by Incremental Scales

Author

Listed:
  • Booth, Alison L
  • Frank, Jeff

Abstract

This paper uses the British Household Panel Survey to investigate when seniority is rewarded by automatic incremental scales. Scales are seen as an alternative to individual merit pay. They are likely to be used when individual productivity is hard to measure, when firms provide all workers with similar levels of training and when workers have sufficient bargaining power to gain insurance against mis-measurement in the allocation of merit pay. The data provide support for these hypotheses.

Suggested Citation

  • Booth, Alison L & Frank, Jeff, 1994. "Coverage by Incremental Scales," CEPR Discussion Papers 1097, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1097
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    More about this item

    Keywords

    Earnings; Merit Pay; Seniority; Unions;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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